On September 10, 2013, the President of the Republic of Palau signed RPPL 9-15 into law. This law imposes an excise tax on all tobacco products, and restricts duty free imports of tobacco products.
Any person who imports cigarettes or tobacco products into the Republic shall pay the applicable excise tax at the point that the products enter the Republic. Tobacco products include any products consisting of or containing the processed leaves of plants from the genus Nicotiana or species tabecum used for smoking, chewing or snuff, and including all products which contain tobacco in any form in an amount that is more than an incidental ingredient or component and that is intended for human consumption and may include all parts and materials, such as filters, rods, and similar matter.
RATE: As of January 1, 2015, cigarettes shall be taxed at the rate of $5.00 per 0.017 kilograms (approximately the weight of a pack of 20 sticks) and packs of cigarettes, weighing less than 0.017 kilograms shall be taxed at the rate of $5.00 per pack.
All other tobacco products shall be taxed at the rate of $5.00 per 0.017 kilograms.
A person arriving in the Republic by common carrier may import into Palau free of taxation, one of the following: One opened pack of cigarettes, one cigar, not exceeding 15 grams, or up to fifteen grams of loose smoking tobacco, chewing tobacco, or pipe tobacco, in an opened package.
NO ALLOWANCE FOR TOBACCO PRODUCTS FOR TRAVELERS UNDER THE AGE OF 21.
Up to two (2) litres of liquor, and up to one (1) pack of cigarettes containing up to twenty (20) cigarettes can be brought into Palau duty-free, importation of controlled substances and weapons, are stricly prohibited and any traveler in possession of any controlled substances will be prosecuted to the full extent of the law of the Republic of Palau
NO ALLOWANCE FOR ALCOHOLIC BEVERAGES FOR TRAVELERS UNDER THE AGE OF 21.